Mathematics · Capital Asset Pricing Model (CAPM)
Using the Capital Asset Pricing Model (CAPM), calculate the Cost of Equity (Ke) for a company if the risk-free rate of return is 6%, the market return is 14%, and the stock's beta (systematic risk) is 1.2.
- 116.4%
- 212.8%
- 315.6%✓
- 414.2%
Correct answer
15.6%
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